RAYALASEEMA GRAMEENA BANK Vs. R YANADAIAH

JUDGEMENT

(1.) Rayalaseema Grameena Bank filed these two revision petitions challenging the orders in S.C.S.R.No.2141 of 1993 and S.C.S.R.N0.2142 of 1993 on the file of Subordinate Judge, Rajampet dated 19-7-1993 rejecting the plaints on the ground of bar of limitation.

(2.) The case of the revision petitioner is that the respondents in both the cases have taken loans as 'Crop Loan' for the purpose of raising banana/ maintenance of mango and banana crop under a single bond dated 1-12-1989. Under the terms of the bond interest is payable on 31st March, 30th June, 30th September and 31st December of each year, while the principal is agreed to be paid on 30-5-1990 as per Schedule-II appended to the bond. In case of default of payment of interest on the aforesaid dates, it is agreed that overdue interest is chargeable from time to time and it shall bear compound interest until interest or principal is paid. It has been averred in the plaint that the respondents-defendants failed to discharge the debt by 30-5-1990 as mentioned in Schedule-II of loan agreement and hence the suits are filed on 5-6-1993 after summer vacation and thus they are in time.

(3.) The learned Subordinate Judge took up the objection relating to maintainability of suit on the ground of limitation for consideration and held that the suits are governed by Article 29 of Limitation Act and that the period of three years begins to run from the date of the bond. Accordingly he held that the suits are not presented within three years from 1-12-1989 i.e., by 1-12-1992, whereas they are presented on 5-6-1993 and hence they are barred by limitation. Accordingly both the plaints have been rejected.